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Area Development

Pennsylvania Direct Financial Incentives 2012

Pennsylvania's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include Building PA, the New Pennsylvania Venture Guarantee Program, and Keystone Opportunity Zones.

2012
Governor's Action Team (GAT)
The Governor's Action Team is a single point of contact for businesses that are considering Pennsylvania as a site for a facility location or expansion. The team works with domestic and international businesses, as well as professional site consultants, on projects involving significant investment and job creation opportunities.

International Business Development (OIBD)
The PA DCED Office of International Business Development (OIBD) is responsible for Pennsylvania businesses' export promotion activity into overseas markets (Center for Trade Development) and the attraction of foreign direct investment to the Commonwealth (Center for Direct Investment), in addition to assisting in the maintenance of Pennsylvania's three active ports (PennPorts). Currently, OIBD has (31) authorized international representatives located throughout the world to assist in the promotion of Pennsylvania's trade and investment activities around the globe.

Act 47
Grants and loans for financially distressed local governments 
Uses of Funds or Service
Financial and technical assistance for financial recovery Development of financial recovery plans
Contact Office
Governor's Center for Local Government Services 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Must meet certain fiscal indicators referenced in program guidelines

Alternative and Clean Energy 
Alternative and Clean Energy Program provides financial assistance in the form of grant and loan funds that will be used by eligible applicants for the utilization, development and construction of alternative and clean energy projects in the Commonwealth. 
Uses of Funds or Service
Funding for businesses and consumers to look for and use alternative sources of fuel and energy
Contact Office
Center for Business Financing, Site Development 
Amounts (If Financing)
Loans vary dependent on job creation.  Grants shall not exceed $5 million and have a term of not more than five years.
Misc.Info
Financing Terms/Conditions
Program administered through CFA  

Appalachian Regional Commission (ARC)
Economic Development organizations, Non-profit entities, Local government in Appalachia PA
Uses of Funds or Service
Skill and knowledge, physical infrastructure, community capacity building, dynamic local economies, and health care
Contact Office
Center for Appalachian Development 
Amounts (If Financing)
Grants vary depending upon project costs

Ben Franklin Technology Development Authority (BFTDA) - Venture Investment Program 
BFTDA initiative to address the financing needs of technology-oriented businesses by increasing the amount of risk capital available in the Commonwealth
Uses of Funds or Service
Loans to venture capital firms or regional angel investor groups that invest the financial capital of third-party investors in private technology startup enterprises
Contact Office
Technology Investment Office 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
BFTDA investment not to exceed 20% of total investment. A  3:1 match is required

Ben Franklin Technology Partner's Challenge Grant and Alternative Energy Development Program (AEDP)
Provides funds to businesses through the four Ben Franklin Technology Partners for access to capital, business expertise, technology commercialization services to advance the development of new technologies and for the generation, conservation, and transportation of alternative and clean energy.
Uses of Funds or Service
Direct company investments, business and technical support, technology and entrepreneurial infrastructure, and administrative expenses.
Contact Office
Technology Investment Office 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
The BFTDA Centers receive funding to award to entrepreneurs, start-up & early-stage companies, established companies, investors, higher education & research and BFTP alumni companies.

Ben Franklin Technology Development Authority (BFTDA) -University Research Funding
Grants designed to promote stronger synergy between university-based research and development and the transfer of technology as it relates to economic and work force development
Colleges or universities
Non-profit organizations partnering with colleges/universities
Uses of Funds or Service
Research and Development Technology transfer approved course of study
Contact Office
Technology Investment Office 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Conforms with university criteria. Supporting large-scale projects identified within research agenda. Financial return to BFTDA

Building PA
Provides mezzanine capital for developers for real estate assets in small to mid-sized Pennsylvania communities.  Professional Investment Fund Managers through a Request for Qualification (RFQ)
Uses of Funds or Service
Real estate development in small to mid-sized PA communities
Contact Office
Center for Business Financing, Site Development 
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Demonstrated capacity, for serving the PA marketplace, including specific geographic areas and/or market segments. Expertise in the proposed real estate sector. Expertise in range of investments demonstrated by experience and success with previous investments. Demonstrated capacity to attract additional investment for projects. 

Business in Our Sites (BOS) 
Empowers communities to attract growing and expanding businesses by helping them build an inventory of ready sites
Municipalities 
Municipal Authorities
Redevelopment Authorities
Industrial Development Agencies Private Developers
Uses of Funds or Service
All site development activities required to make a site "shovel ready" For speculative projects only
Uses of Funds or Service
Center for Business Financing, Site Development
Amounts (If Financing)
No maximum or minimum, except that the maximum amount of the funding for projects located within a single city, borough, town or township may not exceed 15% of the funds available for the program. Grants may not exceed 50% of the total amount of the financing provided, or $5 million, whichever is less. 
Misc.Info
Financing Terms/Conditions
Loans will be "patient" no repayment until property is sold or leased. Site must be previously utilized property or undeveloped property that is planned and zoned for development. Counties/municipalities must be notified Substantial likelihood of site use following development, not for primary residential or recreational purposes. Private developers not eligible for grants. Interest rate set by the CFA

Community Development Block Grant (CDBG)
Grants and technical assistance for federal designated municipalities for any type of community development.  Two components: 
Entitlement program provides annual funding to designated municipalities.                                                     
Competitive program is available to all non-federal entitlement municipalities
Uses of Funds or Service
Housing rehabilitation, public services, community facilities, infrastructure improvement, development and planning
Contact Office
Center for Community Financing 
Amounts (If Financing)
Entitlement funding is set by formula                                        
Competitive Program - $500,000 maximum
Misc.Info
Financing Terms/Conditions
70% of each grant must be used for activities that benefit low- and moderate-income persons. Refer to program guidelines

Community Economic Development Loan Program (CED)
Low-interest loans for projects in distressed communities, stimulating self-help initiatives and helping people build assets at the individual, family and community levels
Uses of Funds or Service
Land and building acquisition                                           
Building, construction and renovation                                        
Machinery and equipment acquisition and installation                                   
Working Capital 
Contact Office
Center for Business Financing, Loans II Division 
Amounts (If Financing)
Loans up to $100,000 or 50% of total eligible project cost, whichever is less
Misc.Info
Financing Terms/Conditions
2% interest rate                                    
Flexible terms                                          
Must apply through ALO

Cummunity Financing Authority (CFA)
The Commonwealth Financing Authority (CFA) was established as an independent agency of the Commonwealth to administer Pennsylvania's economic stimulus packages. The CFA holds fiduciary responsibility over the funding of programs and investments in Pennsylvania's economic growth.

Community Services Block Grant (CSBG)
Federal grant funds to support programs that promote economic self-sufficiency of low-income individuals.                                                           
Designated Community Action Agencies servicing individuals whose income is at 125% of the federal poverty level.  (Entitlement & Discretionary)
Uses of Funds or Service
Case management, job training, food and nutrition, transportation, education, housing, drug and alcohol, and economic development
Contact Office
Center for Community Empowerment 
Amounts (If Financing)
Entitlement: Annual allocations determined by formula                                                 
Discretionary 5% of total allocation
Misc.Info
Financing Terms/Conditions
CAAs must provide breakdown of applicant's board of Directors by public officials, private sector and low-income.  Also must provide a total agency budget 

Customized Job Training Program (CJT)   PA FIRST
Grants for specialized job training to existing or newly hired employees.                                                          
Manufacturing/Industrial                                                           
Agricultural enterprises                                                             
Research & development                                                           
Advanced Technology                                                          
Business service firms (no point of sale/retail)
Uses of Funds or Service
Instructional costs                                               
Supplies                                   
Consumable materials                                          
Contracted services                                           
Relevant travel costs for local education agency project coordinators
Contact Office
Center for Business Financing, Grants Division
Amounts (If Financing)
Grants up to 75% of the eligible costs for new job creation, retention, upgrade training
Misc.Info
Financing Terms/Conditions
Must be for actual training                                         
Trainees must be residents of PA and be employed in PA                                
Participating trainees must earn more than 150% of current minimum wage.                                          
Training must be guaranteed.

Discovered in PA, Developed in PA (D2PA)
The Discovered in PA, Developed in PA (D2PA) program was established to build capacity to better support Pennsylvania businesses and to spur creativity and innovation in the provision of economic development services, from business incubating, to mentoring, to marketing and beyond
Uses of Funds or Service
Reasonable salary/personnel expenses; Consultant fees relating to approved programmatic activities; land/building/equipment improvements; Meeting/travel expenses; Costs associated with preparation and publishing of educational/marketing materials
Contact Office
Innovation & Investment

Early Intervention Program (EIP)
Grant funds to assist municipalities addressing financial management fiscal difficulties. 
Uses of Funds or Service
Development and implementation of multi-year financial management programs and strategies
Contact Office
Governor's Center for Local Government Services 
Amounts (If Financing)
Grants up to $100,000 for 50% of the total project costs.
Misc.Info
Financing Terms/Conditions
50% match required by applicant.  Refer to Program Guidelines for details.

Educational Improvement Tax Credit Program (EITC)
Tax credits to eligible businesses contributing to a scholarship organization, an education improvement organization, or a pre-kindergarten scholarship organization.
Businesses authorized to do business in PA who are subject to one or more of the following taxes:  Corporate Net Income Tax; Capital Stock Franchise Tax, Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; or Mutual Thrift Institution Tax
Uses of Funds or Service
Tax Credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Contact Office
Center for Business Financing, Tax Credit Division
Amounts (If Financing)
Tax credits equal to 75% of its contribution up to a maximum of $100,000 per taxable year.
Can be increased to 90% of the contribution, if business agrees to provide same amount for two consecutive tax years
For contribution to Pre-kindergarten scholarship organizations, a business may receive a tax credit equal to100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $100,000 annually. 
Misc.Info
Financing Terms/Conditions
Applications processed on a first-come-first-served basis by day submitted.
Must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter 
Tax credit not used in the tax year the contribution was made may not be carried forward or carried back and is not refundable or transferable.
NOTE:  This program is not in ESA.

Emergency Shelter Grant (ESG)
Federal grants funding to assist in creating or rehabilitating shelter space for the homeless.
Local Governments                         
Uses of Funds or Service
Creation or rehab of shelter space for the homeless, the purchase of machinery, equipment, furniture and appliances for homeless shelters, the provision of new social services, or the development or upgrade of shelter space
Contact Office
Center for Community Financing 
Amounts (If Financing)
$50,000 minimum and no maximum 
Misc.Info
Financing Terms/Conditions
Refer to program guidelines

Film Tax Credit Grant Program
Tax Credits to film companies who film in PA
Uses of Funds or Service
To support general operations and related expenditures 
Contact Office
Film Office
Misc.Info
Financing Terms/Conditions
FAQ - Janice Collier

First Industries Fund (Tourism or Agriculture and MELF or SBF)
Planning grants, loans and loan guarantees for the agriculture and tourism industries. 
Uses of Funds or Service
Agriculture & Tourism - Loans:
Land and building acquisition and construction
Machinery and equipment purchase and upgrades
Working capital
Operation of Revolving Loan Funds (RLFs) by Regional organizations
Grants:
Planning and redevelopment 
Loan Guarantees: 
Large-scale projects that demonstrate regional impact; deploy new or innovative technologies; demonstration of significant job creation
Contact Office
Loans: 
Center for  Business Financing, Loans II Division
Planning Grants:  Center for Business Financing, Grants Division
Loan Guarantees: Private Capital Financing Centers
Amounts (If Financing)
Loans:
Loans up to $200,000 or 50% of total eligible project costs, whichever is less  
Maximum loan amount for working capital is $100,000 or 50% of total eligible project costs, whichever is less  
Grants: variable
Loan Guarantees: variable
Misc.Info
Financing Terms/Conditions
Refer to Program Guidelines

Growing Greener II
Grant funding for downtown development of blighted properties, redevelopment of industrial sites, and redevelopment projects part of county initiatives
Uses of Funds or Service
Capital improvement costs for building improvements
Contact Office
Housing Projects:  Center for Community Financing
Industries Development: Center for Business Financing, Site Development
Misc.Info
Financing Terms/Conditions
FAQ - Jackie Parker, Aldona Kartorie, or Melissa Williams

Guaranteed Free Training Program (GFT-WEDnetPA)
Manufacturing businesses 
Technology-based businesses
Information technology 
PA businesses other than point of sale retail 
Uses of Funds or Service
Basic Skill - Basic and entry level skills training
Information Technology - Advanced information technology training.  Introductory level training, such as word processing, etc is not eligible. 
Contact Office
Works cooperatively with DCED 
WednetPA 
14 state universities and S.W. Center  
15 PA community colleges 
Penn College of Technology 
N.C. Industrial Tech Education Center 
University of Pittsburgh at Bradford 
Gtr. Altoona and Lancaster County Career/Tech Centers 
Internal contact: Center for Business Financing
Amounts (If Financing)
Basic:
Up to $450 per trainee and $100,000 per company 
Information Technology: 
Up to $700 per trainee and $50,000 per company
Trainees must be residents of PA and be employed in PA
Basic skill
Participating trainees must earn more than 150% of current minimum wage
Information technology
Misc.Info
Financing Terms/Conditions
Trainees must earn at least 150% of current minimum wage
Training for existing information technology employees

H20 PA - Flood Control Projects
Legislation passed July 2009 for grants and loans to provide funding for flood control projects
Uses of Funds or Service
Flood Control Projects 
Contact Office
Center for Business Financing, Site Development 
Amounts (If Financing)
Loans & Grants
Misc.Info
Financing Terms/Conditions
Program administered through CFA

H20 PA - High Hazard Unsafe Dam Projects
Legislation passed July 2009 for grants and loans to provide funding for high hazard unsafe dam projects
Uses of Funds or Service
High hazard Unsafe Dam Projects
Contact Office
Center for Business Financing, Site Development
Amounts (If Financing)
Loans & Grants
Misc.Info
Financing Terms/Conditions
Program administered through CFA

H20 PA - Water, Sanitary Sewer and Storm Sewer Projects
Legislation passed July 2009 for grants and loans to provide funding for sanitary sewer and storm sewer projects
Uses of Funds or Service
Water, Sanitary Sewer and Storm Sewer Projects
Contact Office
Center for Business Financing, Site Development
Amounts (If Financing)
Loans
Grants
Misc.Info
Financing Terms/Conditions
Program administered through CFA

High Performance Building Program
Provides loan funds to underwrite the cost premiums associated with the design and construction or major renovation of high performance buildings.
Uses of Funds or Service
Activities to assist with construction or renovation associated with a high performance building
Contact Office
Center for Business Financing, Loans II Division
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Program administered through CFA

HOME
Federally funded program that provides municipalities with loan assistance and technical assistance to expand the supply of decent and affordable housing for low and very low-income Pennsylvanians. Local governments that are not HUD participating jurisdictions. Local government on behalf of private, non-profit and for-profit housing development corporations.
Uses of Funds or Service
New construction, rehabilitation, acquisition of rental or sales housing and rental assistance for low- and moderate-income families
Contact Office
Regional Office
Center for Community Financing
Amounts (If Financing)
Maximum grant is $500,000
Misc.Info
Financing Terms/Conditions
A 25% local match on project costs from non-federal resources for existing housing is required. 30% local match is required for new construction. Refer to the Program Guidelines



IDA Bond Financing Program
A regulatory program which reviews and approves applications for all tax-exempt and taxable projects being financed through an IDA.
Uses of Funds or Service
Tax exempt: land, building, equipment, limited closing costs, eligible refinancing Taxable: land, building, closing costs, working capital, refinancing
Contact Office
Center for Private Financing
Amounts (If Financing)
Tax exempt
$1-$10million
Taxable: unlimited
Misc.Info
Financing Terms/Conditions
This program is not available in ESA

Industrial Sites Clean-up (Act 2 and Act 4) Industrial Sites Reuse Program (ISRP) (Act 2 and Act 4)
Grants and low interest loans for assessment and remediation of property or environmental site assessment and remediation work at a former industrial sites.
Uses of Funds or Service
Assessment and remediation of property
Phase I,II,and III environmental assessment
Remediation of hazardous substances
Contact Office
Center for Business Financing, Site Development
Amounts (If Financing)
Grants and loans up to $200,000 for assessments and up to $1M for remediation, ISR pays 75% of all eligible total project costs
Misc.Info
Financing Terms/Conditions
Varies

Infrastructure and Facilities Improvement Program (IFIP)
A multi-year grant program that will provide grants to certain issuers of debt in order to assist with the payment of debt service.
Authorities that issue debt for Tax Increment Financing Redevelopment Authorities Convention center authorities, including municipal authorities formed for the purpose of convention center activities
The Pennsylvania Economic Development Financing Authority
Uses of Funds or Service
Payment of debt service incurred by the authority relating to debt issued for the project
Contact Office
Center for Business Financing, Site Development Division
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Refer to Program Guidelines.

Infrastructure Development Program (IDP)
Grant and low-interest loan financing for public and private infrastructure improvements
Municipalities, industrial development authorities and corporations, municipal authorities, redevelopment authorities and local development districts may apply for IDP assistance for themselves or on behalf of eligible private companies engaged in the following enterprises Agriculture Industrial Manufacturing Research and development Export services Real estate developers who are developing sites for eligible private companies
Uses of Funds or Service
Transportation facilities, airports Clearing preparation of land environment remedation Watewre and Sewer Systems Energy facilities Parkng facilities
Clearing and preparation of land and environmental remediation Storm Sewers Bridges; Waterways Rail facilities Port facilities at former industrial sites only: land and building acquisition, construction and renovation by private developers Telecommunications infrastructure
Contact Office
Center for Business Financing, Site Development Division
Amounts (If Financing)
Loans and grants up to $1.25 million
No more than 20% of the annual appropriation for a single municipality
No more than 10% of the annual appropriation will be loans or granted to applicant for speculative Greenfield projects not involving private companies
Misc.Info
Financing Terms/Conditions
Grants for public infrastructure
Loans to private businesses at 3% interest rate
Up to 15-year term
2:1 private to public match required
$25,000 cost per job to be created within five years or 10 new full-time equivalent jobs (whichever is greater)

Job Creation Tax Credits (JCTC)
A $1,000-per-job tax credit to create new jobs in the Commonwealth within three years Approved businesses
Uses of Funds or Service
Tax credits used to offset various business tax liabilities
Contact Office
Center for Business Financing, Tax Credits Division
Amounts (If Financing)
$1,000-per-job tax credit to approved businesses that agree to create jobs within three years. 25% of the tax credits allocated each year must go to businesses with less than 100 employees
Misc.Info
Financing Terms/Conditions
Tax credits may not be utilized by a business until the jobs are actually created. Must create at least 25 new jobs equaling at least 20% of the existing workforce

Keystone Communities
Provides state-funded grants for community revitalization and economic development activities at the local level. The program assists the community in becoming competitive for business retention, expansion and attraction.
Local Governments
Redevelopment Authorities
Housing Authorities
Non-profits on a case by case basis
Uses of Funds or Service
Community revitalization and economic development
Development or rehabilitation of housing
Contact Office
Regional Office
Center for Community Financing
Amounts (If Financing)
No minimum or Maximum
Typical grants average between $150,000 and $200,000
Misc.Info
Financing Terms/Conditions
Refer to Program Guidelines

Keystone Innovation Zones (KIZ)
Provide grant funds to community/university partnerships to generate job growth through tech transfer and entrepreneurship. Focused around campuses and property around college and universities.
Partnerships must include: institution of higher education, economic development organizations, private sector businesses, business support organizations, commercial lending institutions, venture capital, and foundations.
Recommended partners include: local government organizations and workforce development organizations.
Uses of Funds or Service
Grant funds will be used for Zone coordination, strategic planning, personnel costs, hiring of consultants and administration of the zone. Companies located in tax zones, in operation less than 8 years and fall under the industry sector focus are eligible to apply for state tax credits
Contact Office
Technology Investment Office
Amounts (If Financing)
Maximum for the first year of $250,000. Declining funding in following years, operations required without state funds after three years.
Projects and companies in the KIZ are given priority reviews under various DCED Programs.
Misc.Info
Financing Terms/Conditions
Partnership must meet definition and required members
Zone must define industry sector focus
Zone must be geographically identified and should include an institution of higher education with research capabilities. Institution does not have to be located in zone boundaries, but must be formally linked to zone activities.
1:1 cash match required
Refer to Program Guidelines
1:1 cash match required
Program ends July 2007

Keystone Opportunity Zones (KOZ)
Provides state and local tax abatement to businesses and residents locating in one of the 12 designated zones.
Qualified businesses, property owners and residents. Qualified means you satisfactorily meet the necessary criteria listed in the Act.
Uses of Funds or Service
Businesses, property owners and residents that are located in a KOZ, KOEZ/KOIZ are eligible to receive significant state and local tax benefits.
Contact Office
Center for Business Financing, Site Development Division
Amounts (If Financing)
Projects in KOZ/KOEZ are given priority consideration for assistance under various community and economic building initiatives.
Misc.Info
Financing Terms/Conditions
Pennsylvania businesses relocating to a KOZ/KOEZ must either:
Increase their full-time employment by 20% within the first full year of operation, or make a 10% capital investment in the KOZ/KOEZ property based on their prior year's gross revenues. Eligibility for benefits is based upon annual certification. In order to receive benefits, any entity applying must be compliant with all local and state taxes and building and zoning codes.

KIZ Tax Credit and Tax Credit Sale
Tax credits are available for KIZ companies less than eight years old that operate within the geographic boundaries of a KIZ and are working in one of the KIZ targeted industry sectors.
The tax credits are based on the increase in annual gross revenues derived from operations in the KIZ for the two years prior to application for the tax credit.
Tax credits are one half of this increase in revenue or $100,000, whichever is the lesser amount
KIZ tax credit award applications must be submitted by September 15.
Uses of Funds or Service
The KIZ credits will first be applied to offset the company's tax liability for the taxable year in which the tax credits were awarded. The original company awarded the credits may used or sell/assign any remaining unused credits they have for up to five years from the original date.
Contact Office
Technology Investment
Amounts (If Financing)
$25,000,000 in KIZ tax credits is available annually for award.
Misc.Info
Financing Terms/Conditions
This program is not available in ESA

Life Science Greenhouse
Grants to help groups or consortia of Pennsylvania companies position themselves at the cutting edge of emerging technologies
Uses of Funds or Service
Technology Development
R&D Development
Technology Transfer
Contact Office
Technology Investment Office
Amounts (If Financing)
Varies

Local Government Capital Project Loan Program (LGCPL)
Low-interest loans to for equipment and facility needs.
Local Government with populations of 12,000 or less
Uses of Funds or Service
Rolling stock and data processing equipment purchases or the purchase, construction, renovation or rehabilitation of municipal facilities
Contact Office
Governor's Center for Local Government Services
Amounts (If Financing)
50% of the total cost of purchasing equipment up to a maximum of $25,000 or 50% of the total cost for purchase, construction of renovation of municipal facilities up to a maximum of $50,000
Misc.Info
Financing Terms/Conditions
2% interest rate
Repaid over a period not to exceed 10 years or the useful life of the equipment or facility.
Refer to program guidelines

Local Share Account - Washington -- (LSA - Washington)
Grants to eligible municipalities, economic development and redevelopment authorities in and around Washington. Funds usage is specific to needs of the area.
Uses of Funds or Service
Economic development projects
Health and safety projects
Public interest projects
Community improvement projects\ Job training
Reasonable administrative costs
Contact Office
Center for Business Financing, Grants Division
Amounts (If Financing)
Varies

Local Share Account - Luzerne (LSA - Luzerne)
Grants to eligible municipalities, economic development and redevelopment authorities in and around Luzerne. Funds usage is specific to needs of the area.
Uses of Funds or Service
Economic development projects Health and safety projects; Community improvement projects; Job training; reasnable administrative costs
Contact Office
Center for Business Financing, Grants Division
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
2% of gross terminal revenues of certain licensed gaming facilities are to be distributed in an orderly and timely fashion to support and enhance community and economic well-being and mitigate the impact of gaming and related activities.
REFER to GUIDELINES.
Detailed uses, application review process, and eligible entities are outlined in the guidelines. Program administered through CFA

Local Share Account - Monroe (LSA - Monroe)
Grants to eligible municipalities, economic development and redevelopment authorities in and around Monroe.
Funds usage is specific to needs of the area.
Uses of Funds or Service
Economic development projects
Health and safety projects
Public interest projects
Community improvement projects
Job training
Reasonable administrative costs
Contact Office
Center for Business Financing, Grants Division
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
2% of gross terminal revenues of certain licensed gaming facilities are to be distributed in an orderly and timely fashion to support and enhance community and economic well-being and mitigate the impact of gaming and related activities
REFER to GUIDELINES.
Detailed uses, application review process, and eligible entities are outlined in the guidelines.
Program administered through CFA

Machinery and Equipment Loan Fund
Low-interest loans to acquire and install new or used machinery and equipment or to upgrade existing machinery and equipment Uses of Funds or Service
Manufacturing Industrial Agricultural processors Direct mining operations
Machinery and equipment acquisition and upgrading, engineering/ installation costs directly related to the operation or processes
Contact Office
Center for Business Financing, Loans I Division
Amounts (If Financing)
Loans up to $500,000 or 50% of the total eligible project costs, whichever is less
Misc.Info
Financing Terms/Conditions
Interest rates 2.75%
Up to 10 year term, depending upon the useful life of the machinery being financed
$25,000 cost per job retained or created
Project must be directly related to the manufacturing process

Municipal Assistance Program
Provides grant funds that promote cooperation among municipalities. Also encourages more efficient and effective delivery of municipal services on a cooperative basis.
Two or more local government or Councils of Governments (COGSs).
Uses of Funds or Service
Combined police records administration, shared personnel activities, joint ownership of equipment, shared data processing operations, cooperative building code programs and COG start-up funding
Contact Office
Governor's Center for Local Government Services
Amounts (If Financing)
No minimum or Maximum
Grants range between $10,000 and $25,000
Misc.Info
Financing Terms/Conditions
50% match required.
Refer to Program Guidelines

Municipal Assisting Program
Pennsylvania Municipalities participating in the National Flood Insurance Program (NFIP), complying with Act 166 and submitting an Annual Report
Uses of Funds or Service
Preparation, administration and enforcement of floodplain management regulations.
Contact Office
Governor's Center for Local Government Services
Amounts (If Financing)
50% of the eligible costs. No maximum dollar limit
Misc.Info
Financing Terms/Conditions
Submission of a completed DCED-SPO-58/Reimbursement Application- Flood plain management activities on an annual basis along with supporting documentation

Neighborhood Stabilization Program (NSP)
Grants to communities to address the housing foreclosure crisis created by subprime and other problematic mortgage lending. This program is authorized under the federal Community Development Block Grant (CDBG) Program.
Contact Office
Regional Office
Center for Community Empowerment
Amounts (If Financing)
Loans no less than $,1000,000, no upper limit. In general $500,000 may be borrowed for every 10 new direct or indirect jobs the borrower can demonstrate the project will create Grants to local units of governments or non-profit entities for the stabilization of neighborhoods with significant foreclosure. Refer to the program guidelines for details

NewPA Venture Capital Investment Program
CFA initiative to address investment in early stage companies and includes provisions for investments in areas of PA underserved by the risk-capital market Loans to venture capital firms or regional angel investor groups that invest the financial capital of third party investors in private technology startup enterprises; 50% of program funds are available to venture capital firms which operate locations in historically underserved areas of PA defined as counties outside of the Philadelphia MSA and Allegheny County and those with populations below 1 million. Additionally 50% of the loaned funds are invested in these areas
Contact Office
Technology Investment Office
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Program administered through CFA

Next Generation Farmer
Federal tax-exempt mortgage financing to reduce a farmer's interest rate for capital purchases such as farm land or agricultural machinery and equipment
Uses of Funds or Service
Purchase of land or machinery and equipment
Contact Office
Center for Private Financing
Amounts (If Financing)
Maximum loan amount of $470,000 with no more than $62,500 being used towards the purchase of used equipment
Misc.Info
Financing Terms/Conditions
IDA is only entity eligible to apply PA Technical Assistance Program (PennTAP)
One application for one designated entity for program implementation of technical assistance to manufacturing business owners.
Contact Office
Technology Investment Office

Pennsylvania Community Development Bank Loan Program (PCD Bank)
Debt financing for Community Development Financial Institutions (CDFIs) Public funds (25%) matched with private sector funds (75%) to create a loan pool for eligible
CDFIs.
State accredited community development financial institution
CDFI must meet state accreditation standards and program underwriting guidelines
Minimum two years lending experience
Focus on economic development and job creation
Uses of Funds or Service
Economic development loans that support job creation
Community development loans that support job creation
Contact Office
Center for Community Financing - or Private Capital Financing
Amounts (If Financing)
Loans from $250,000 to $5 million
Misc.Info
Financing Terms/Conditions
Principal and interest repaid quarterly
Interest rate is a blend between public rate of 50 basis points and private rate of U.S. Treasury rate plus 100 basis points
Collateral required
Monitoring covenants established for each borrower

Pennsylvania Economic Development Financing Authority (PEDFA)
Tax Exempt Bond Program
Manufacturing
Nonprofit 501(c) (3)
Energy
Solid Waste disposal
Wastewater treatment
Transportation facilities
Assisted living/housing
Uses of Funds or Service
Land and building acquisition
Building renovation and new construction
Machinery and equipment acquisition and installation
Designated infrastructure
Tax-exempt bond refinancing
Contact Office
Center for Private Financing
Amounts (If Financing)
Loans no less than $400,000 and no more than $10 million for manufacturers
No upper limit for other projects
Up to 100% of project costs
Misc.Info
Financing Terms/Conditions
Since 1989, rates have averaged 46% of prime interest rate
Weekly variable interest rate tied to market for tax-exempt bonds
Up to 30-year term
Borrower generally must secure letter of credit from bank
$500 fee due at time of application, to be credited against the issuance fee when project closes

Pennsylvania Economic Development Financing Authority (PEDFA) Taxable Bond Program
All types of businesses needing access to low-cost capital
Uses of Funds or Service
Land and building acquisition
Building renovation and new construction
Machinery and equipment acquisition and installation
Designated infrastructure
Refinancing
Working capital
Contact Office
Center for Private Financing
Amounts (If Financing)
Loans no less than $400,000
Up to 100% of project costs
Misc.Info
Financing Terms/Conditions
Since 1990, rates have averaged 61% of prime interest rate
Weekly variable interest rate tied to market for taxable bonds
Term is based upon negotiated letter of credit
Borrower generally must secure letter of credit from bank
$500 fee due at time of application to be credited against the issuance fee when project closes

Pennsylvania Industrial Development Authority (PIDA)
Manufacturing
Industrial
Agricultural processors
Firms establishing a national or regional headquarters
Computer/clerical operation centers
Uses of Funds or Service
Land and building acquisition
Building construction and renovation
Multi-tenant spec building construction, acquisition and renovation
Contact Office
Center for Business Financing, Loans Division
Amounts (If Financing)
Loans up to $2 million (within Enterprise Zones, Act 47 Industrial Communities, Brownfield Sites, and Keystone Opportunity Zones, $2.25 million)
No more than 30% to 70% of total eligible project costs, depending upon firm size and unemployment rate
Brownfield sites and those in an Act 47 municipality, Enterprise Zone, Keystone Opportunity Zone or Advanced Technology projects qualify for the lowest 2.75% interest race (currently 3.25%).
Misc.Info
Financing Terms/Conditions
3.25% or 4.25% interest rate, depending upon local unemployment rate (Rates subject to change; contact PIDA for current rates)
Up to 15-year term on land and buildings
No less than a second mortgage on financed assets
Disbursement to applicant based upon reimbursable expenses
$35,000 cost per job created or retained (no cost per job requirement on industrial park or multi-tenant projects.)

Pennsylvania Minority Business Development Authority (PMBDA)
Businesses owned and operated by ethnic minorities
Uses of Funds or Service
Land and building acquisition
Building, construction and renovation
Machinery and equipment acquisition and installation
Working capital
Contact Office
Center for Business Financing, Loans I Division
Amounts (If Financing)
Manufacturing, industries, high-tech, international trade or franchise companies:
Loans up to $500,000 (within Enterprise Zone, $750,000) or 75% of total eligible project costs, whichever is less
Retail or commercial firms:
Loans up to $250,000 (within Enterprise Zone, $350,000) or 75% of total eligible project costs, whichever is less
Misc.Info
Financing Terms/Conditions
50% of prime interest rate, but no less than 4% Up to 15-year term for land and buildings
Up to 10-year term for machinery and equipment
Up to 3-year term for working capital
25% private-sector match required
25% private-sector match required
25% private-sector match required
Disbursement at closing
$15,000 cost per job created

Pennsylvania Pollution Prevention Assistance Program (PPAA)
Small businesses (100 employees or less) that operate from a stationary source and adopt or install pollution prevention or energy efficient equipment or processes
Uses of Funds or Service
Machinery and equipment acquisition and installation
Contact Office
Center for Business Financing, Loans II Division
Amounts (If Financing)
Loans up to $100,000 or 75% of total eligible project cost, whichever is less
Misc.Info
Financing Terms/Conditions
2% interest rate
Up to 10-year term

Regional Investment Marketing (RIM)
Grants to Regional economic development entities to promote trade and export for Pennsylvania businesses
Uses of Funds or Service
Grants for export/trade marketing efforts - must utilize IBM Global Competitiveness Tool
Contact Office
OIBD
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Amy Zecha can also provide assistance

Renewable Energy Program Geothermal and Wind Projects
Grant and loan funds to eligible entities for geothermal and wind energy technologies
Uses of Funds or Service
To promote alternative energies
Contact Office
Center for Business Financing, Site Development Division
Amounts (If Financing)
Grant and Loans - details in guidelines
Misc.Info
Financing Terms/Conditions
Guidelines available at www.newpa.com

Second Stage Loan Program
Loan Guarantees for working capital for 2-8 yr old manufacturing, biotech, and technology-oriented companies
Pennsylvania banks
Uses of Funds or Service
Preference will be given to guarantees for working capital.
Land, building, machinery and equipment also eligible.
Contact Office
Center for Private Financing
Amounts (If Financing)
To be determined
Misc.Info
Financing Terms/Conditions
Program Guidelines to be approved and issued by Commonwealth Finance Authority. Visit www.newpa.com to confirm issuance and see details.

Section 108 Loan Program
Loan Guarantees as security for federal loans
Uses of Funds or Service
Acquisition, rehabilitation, relocation, clearance, site preparation, special economic development activities, certain public facilities and housing construction
Contact Office
Center for Community Financing
Amounts (If Financing)
Varies
Misc.Info
Financing Terms/Conditions
Refer to program guidelines

Small Business First (SBF)
Small business (100 employees or less) which are:
Manufacturing
Industrial
Mining enterprises
Hotels, motels, or restaurants
Municipal or commercial recyclers
Uses of Funds or Service
Land and building acquisition and construction
Machinery and equipment purchase and upgrades
Working capital
Contact Office
Center for Business Financing, Loans II Division
Amounts (If Financing)
Loans up to $200,000 or 50% of total eligible project costs, whichever is less
Maximum loan amount for working capital is $100,000 or 50% of total eligible project costs, whichever is less
Misc.Info
Financing Terms/Conditions
2.75% interest rate
$25,000 cost per job retained or created
Up to 15 year term, for land and building
Up to 10 year term for machinery and equipment
Up to 3-year term for working capital

Solar Energy Program
The Solar Energy Program provides financial assistance in the form of grants and loan funds to promote the use of alternative energy in the Commonwealth.
Uses of Funds or Service
Purchase and installation of solar systems
Purchase and installation of equipment used to manufacture solar energy components
Purchase and installation of equipment related to research and development associated with solar energy systems
Contact Office
Grants Division
Amounts (If Financing)
Maximum loan request for generation project: $5 million or $2.25/watt, whichever is less
Maximum grant request for generation project: $1 million or $2.25/watt, whichever is less
Maximum loan request for manufacturing projects: $35,000 for every job projected to be created within three years of approval of loan
Maximum grant request for manufacturing projects: $5,000 for every job projected to be created within three years of approval of grant
Maximum loan request for research and development projects: $5,000,000
Maximum grant request for research and development projects: $1,000,000
10 year amortization
Misc.Info
Financing Terms/Conditions
5% fixed rate currently, subject to change (most current rate is posted on newpa.com)
Program administered through CFA

Tax Increment Financing (TIF) Guarantee Program
Promotes and stimulates the general economic welfare of various regions and communities in the Commonwealth and assists in the development, redevelopment and revitalization of Brownfield and Greenfield sites in accordance with the TIF Act. The program provides credit enhancement for TIF projects to improve market access and lower capital costs through the use of guarantees to issuers of bonds or other indebtedness.
All municipalities and their authorities, including boroughs, townships, towns, counties and home rules that issue TIF bonds to fund local economic development projects.
Uses of Funds or Service
Infrastructure and environmental projects for industrial enterprises and retail establishments
Infrastructure, environmental and building projects for manufacturers, hospitals, convention centers and associated hotels
Utilization of abandoned or underutilized industrial, commercial, military, previously mined institutional sites or buildings; or undeveloped sites planned and zoned for development in accordance with any existing comprehensive municipal plan.
Contact Office
Center for Private Financing
Amounts (If Financing)
Maximum guarantee amount per project is $5 million
Misc.Info
Financing Terms/Conditions
Project must be located in a blighted area (containing the characteristics of blight as described in the Urban Redevelopment Law).
Project must be located within a TIF district
Project must be located on previously utilized property or on undeveloped property that is planned and zoned for development
Project must demonstrate its ability to comply with the TIF law prior to the issuance of bonds or other indebtedness.
Applicants must show that the revenue to be realized as a result of the project will be sufficient to offset the amount of the debt service
Business or private developers must agree to create a certain number of permanent full-time jobs within the TIF district.


Water Supply and Wastewater Infrastructure Program (PennWorks)
Municipalities
Industrial Development Corporations
Municipal Authorities
Investor-owned water or wastewater enterprise
Uses of Funds or Service
For water and sewer projects not used solely for residential purposes:
Land and building acquisition
Demolition
Water/sewer project
construction costs
Engineering and other fees associated with project.
Contact Office
Center for Business Financing, Site Development Division
Amounts (If Financing)
Grants and Loans:
Grants: $5 million maximum or 75% of the total eligible project costs, which ever is less.
Loans: $5 million maximum per project. 2% interest rate; may have repayment term of up to 20 years.
Additional limitations apply. Refer to guidelines.
Misc.Info
Financing Terms/Conditions
The project must serve a site or sites being prepared for economic development activities which involve the investment of capital in Pennsylvania enterprises and communities or which results in the creation of new or the preservation of existing jobs.
Please refer to Guidelines for additional details.
NO NEW FUNDING FOR THIS PROGRAM YEAR

Weatherization Program (WXX) aka LIHEAP
A federal program that works to minimize the adverse effects of high energy costs on low-income, elderly and handicapped citizens through client education activities and by providing weatherization services
Fixed network of local governments
Non-profit organizations
Uses of Funds or Service
Services include
Heating system modifications
Employing measures to reduce air leakage
Installing attic insulation
Replacing heating systems
Contact Office
Center for Community Empowerment
Amounts (If Financing)
Annual allocations to local governments determined by formula
Misc.Info
Financing Terms/Conditions
Refer to program guidelines Pennsylvania State Contact:
Governor's Action Team
Commonwealth of Pennsylvania
400 North Street
Commonwealth Keystone Building
Harrisburg, PA 17120
(717) 787-8199
Fax: 717-772-5419

Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.

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